Basic HTML Version
eighton Contractors says
it will remain a leading
player in the contract
mining industry despite
the $705 million sale
of its major Pilbara contract services to
BHP Billiton earlier this year.
Leighton
Contractors’
Managing
Director, Craig Laslett, said BHP Billiton’s
publicly stated intention since 2008 to
transition to an owner operator model was widely known and the
sale of the Pilbara-based iron ore assets represented a positive
result for both parties.
“The signing of a Heads of Agreement announced in August
relates to the mining equipment, people and related assets
that service the Area C, Yandi and Orebody 23/25 operations,”
Mr Laslett said.
“The three operations collectively account for around 70% of
BHP Billiton’s iron ore mining in Western Australia.
“The purchase price of $705 million is subject to working
capital adjustments and final documentation with the figure
representing the creation of substantial value by Leighton since it
bought HWE Mining out of administration in 2006.
“In the five years since that acquisition, we have been
successful in re-invigorating those assets and growing the
business. Completion of this sale to BHP Billiton – expected by the
end of 2011 – will generate substantial cash for re-investment in
the Leighton Group and in new initiatives.
“While this sale marks a big change, it also represents an
opportunity to grow our mining business and broaden our client
base. We are currently in the process of tendering for a number of
new significant mining opportunities in Western Australia.”
Leighton’s other subsidiaries are not involved and contracts
with other clients will not be affected.
According to Steven Keyser, Executive General Manager of
Leighton Contractors’ Resources Division, the sale represents
an opportunity to expand its presence in the mining sector
across Australia with both existing clients and through pursuing
opportunities with new companies, including those in the
iron ore industry.
“Overall, it is an exciting time for us. We have a strong
pipeline of projects which will enable us to continue to expand our
activities and grow our business, and we’re looking forward to this
new chapter,” Mr Keyser said.
STEVEN KEYSER
EXECUTIVE GENERAL MANAGER
LEIGHTON CONTRACTORS
CONTRACT
MINING
PLANS
AREA C PILBARA-BASED IRON OPERATION
LEIGHTON’S
L
MINESITE 2011
•
97